Trade credit insurance provides protection against the risk of default that may arise in domestic or international trade relations. Whether it is the provision of goods or services with payment on due date, trade credit insurance can protect the lending company against losses that result if customers (debtors) stop paying.

Trade credit insurance provides protection to economic agents against the specific risks of export activities, thus contributing to the promotion of the export activities of their home country, the market penetration of domestic products and the provision of support to economic agents for increased competitiveness and export security in foreign markets.

Export credit insurance has the following characteristics:

• the policyholder may be the exporter or its bank;
• the exporter must be a resident of the country;
• as a rule, the objects of the export activity and the insurance services are local goods and services;
• the policyholder may also be a bank or a financing institution based in the country;
• credit is granted with the condition of taking out the insurance.

Export credit insurance is an optional insurance. Companies are not legally required to take out such insurance.